Energy UK response to Consultation on potential technical amendments to the CfD scheme to relax eligibility criteria for fixed-bottom offshore wind projects from AR7

Executive Summary

Energy UK is the trade association for the energy industry with over 100 members –
from established FTSE 100 companies right through to new, growing suppliers,
generators and service providers across energy, transport, heat and technology.
Energy UK’s members deliver nearly 80% of the UK’s power generation and over
95% of the energy supply for 28 million UK homes and businesses. The sector
invests £13bn annually and delivers nearly £30bn in gross value – on top of the nearly
£100bn in economic activity through its supply chain and interaction with other
sectors. The energy industry is key to delivering growth and plans to invest £100bn
over the course of this decade in new energy sources.

The energy sector supports 700,000 jobs in every corner of the country. Energy UK
plays a key role in ensuring we attract and retain a diverse workforce. In addition to
the Young Energy Professionals Forum, which has over 2,000 members representing
over 350 organisations, Energy UK is a founding member of TIDE, an industry-wide
taskforce to tackle Inclusion and Diversity across energy.

Energy UK welcomes the opportunity to respond to this consultation on technical
amendments to the Contracts for Difference (CfD) scheme ahead of Allocation
Round 7 (AR7). While we will not be expressing, at this time, our views on relaxing
eligibility criteria for fixed-bottom offshore wind projects, we have had serous
concerns expressed by members regarding the misalignment of timelines for the
AR7 bidding window and the offering of new connection contracts as part of Targeted
Modification Option 4+ (TMO4+) for connections reform. We have therefore only
responded to question 22. There is an urgent need for clarity, from both the
Government and NESO, to ensure participants in the auction will have their existing
revenues protected in the event their connection date is moved away from the award
payment period.

If you have any questions about this response or wish to engage with Energy UK or
its members, we would welcome further engagement.

Tobias Burke, Policy Manager
Tobias.burke@energy-uk.org.uk